Construction & Real Estate
A.M. Ortega Construction Inc. stands as a leading underground utility construction, grading, and paving contractor based in Lakeside, CA (San Diego County). Boasting a workforce of over 300 field employees and 50 professionals in accounting, estimation, design, project management, administration, and senior management roles, the company efficiently handles a substantial volume of public and private projects, ensuring timely and budget-friendly completion. Recently, the company adopted Sage Paperless Construction to extend the same operational efficiencies from its projects to its office workflow.
Pursuing a Genuine Paperless Payable Software
A.M. Ortega Construction grappled with a fully manual accounts payable process, involving the manual routing of paper invoices for approval and filing them in cabinets alongside check copies. Bruce Evenrud, the CFO, emphasizes the significant paper volume and time expended, estimating the processing of around 4,000 accounts payable invoices monthly. Seeking a genuine paperless solution, the company transitioned to Sage Paperless Construction, a document management and workflow automation solution tightly integrated with its Sage Construction and Real Estate platform. The impact was transformative, replacing the manual system with an efficient, paperless process where payable invoices are electronically routed and checks are digitally associated with the invoices.
Enhancing Monthly Cash Flow by $4 Million
A.M. Ortega Construction, responsible for numerous time and material jobs, issues an average of 4,000 invoices monthly. The previous manual billing process, involving five full-time employees, led to delays and inefficiencies. With Sage Paperless Construction, job expense invoices and supporting documents are automatically routed for approval, eliminating delays and the need for manual copying. The streamlined process accelerates the billing cycle, reducing it from 15 to 20 days down to a remarkable two days. This change resulted in a significant monthly cash flow increase of over $4 million.
Boosting Job Profits by $4 - $5 Million
Before adopting Sage Paperless Construction, the company lacked a formal process for routing daily field billing reports for invoicing. Sorting and completing billing took 15 to 20 days. With the new system, daily reports are automatically routed to the designated billing person, expediting the process. These changes have contributed to an annual increase in profits of about $4 to $5 million for Time and Material jobs. Additionally, the company reclaimed valuable square footage by eliminating unnecessary filing cabinets.
Efficient Growth with Reduced Overhead
Sage Paperless Construction has not only enhanced efficiency but also allowed A.M. Ortega Construction to grow faster with less overhead. Evenrud's advice to other contractors is clear—embrace technology to stay competitive, as resisting it could result in losing ground to competitors leveraging operational efficiencies for thorough growth.